[the_ad id="121217"]

popular articles

Shell calls for stability and predictability in US policies

Shell CEO Wael Sawan calls for stable energy policies in the US to attract investment in LNG and renewable energy projects.
Shell plaide pour la stabilité et la prévisibilité des politiques américaines.

Please share:

At an event organized by the Center for Strategic and International Studies (CSIS), Wael Sawan stressed the importance of the stability and predictability of the US energy system in attracting global investment in liquefied natural gas (LNG) and renewable energy projects, as reported by S&P Global Commodity Insights. Shell focuses on value creation and emissions reduction in its strategic decision-making, forecasting stable oil production and peak growth in the 2030s. The company sees a significant growth opportunity for LNG, combining value and emissions reduction, withAsia presenting massive growth potential and LNG generally replacing coal. At the heart of Shell’s transformation is its downstream renewable energy business, which aims to meet lower-carbon demand from its customers.

The risks of a lack of reliability and stability

Sawan warned that the U.S. risks missing out on this opportunity if it fails to demonstrate its reliability as an energy supplier, independent of congressional administration or oversight. According to S&P Global Commodity Insights, the current pause on LNG export approvals, while having no immediate impact on supply, is undermining confidence in US LNG at a time when US allies are seeking reliable supplies to anchor their energy systems. Without this assurance, they will have to turn to other, potentially higher-emitting energy sources or other LNG suppliers, which puts the USA at a disadvantage. Joseph Majkut, Director of CSIS’s Energy Security and Climate Change Program, confirmed that he had heard similar warnings from other foreign companies and officials.

The unique role of the United States in the global gas system

The USA plays a unique role in the global gas system, thanks to its FOB cargoes, flexibility of destination and the presence of numerous traders ready to enter a much more commoditized market than was the case 8 to 10 years ago. Sawan stressed the importance of the United States’ role as a global energy supplier, particularly in the context of Russia’s invasion of Ukraine and the resulting disruption of energy trade flows. Shell evaluates not only which technologies to invest in, but also where best to deploy capital. The United States ranks highly in this respect, thanks in particular to support from the bipartisan Infrastructure Act and the Inflation Reduction Act.

The importance of continuity in energy policies

With the US presidential elections approaching in November, Sawan hopes that the future leader will see the value of these laws and continue to encourage companies like Shell to invest in what could be a huge advantage for the US over the next 10-15 years. He stressed the essential role of capitalism in creating the right incentives, while acknowledging the need for government support such as the Inflation Reduction Act in the US or the EU’s Fit for 55 package to counter fossil fuel inertia and catalyze the energy transition. Asked by S&P Global Commodity Insights about the possibility of a radical change in energy and environmental policy in the US next January, and the impact that a relaxation or withdrawal of methane and other regulations could have on Shell’s LNG export business, Sawan replied that he would wait for “concrete actions” to determine the company’s decisions. Shell will adapt where necessary, while continuing to promote the unique positioning of the US LNG market for supply to the rest of the world. With regard to methane regulation in particular, Sawan expressed Shell’s fundamental belief that every molecule of methane should be captured and put to constructive use, not simply released into the environment. The company imposes high standards on itself and will respect them even if the requirements in the country of operation are lower. Wael Sawan’s call for stability and predictability in US energy policies underlines the importance of creating an environment conducive to investment in LNG and renewable energy projects. The United States has the opportunity to play a key role in the global energy transition, but to do so it must demonstrate its reliability as an energy supplier, regardless of political changes. Companies like Shell are ready to invest on a massive scale, but they need a stable incentive framework to make it happen.

Long tail: Energy stability, investments, LNG, renewables, United States

Meta-description: Shell CEO calls for stability in US energy policies to attract investment in LNG and renewables projects, underlining the key role of the US in the global energy transition.

Countries listed: United States, Russia, Ukraine

Companies & organizations mentioned: Shell, Center for Strategic and International Studies (CSIS), US Congress, European Union (EU)

Tags: Wael Sawan, Inflation Reduction Act, bipartisan infrastructure bill, Fit for 55, methane regulations, US presidential elections, capitalism, energy transition

Themes: Business investment

Photo ideas :
1. Wael Sawan speaking at the CSIS event
2. A Shell LNG plant, symbolizing investment in this transitional energy.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Gas consumption in Germany falls for the second consecutive year
EU’s Energy Security Strengthened: Gas Storage Surpasses Targets Before Winter
EU’s Energy Security Strengthened: Gas Storage Surpasses Targets Before Winter
The EU Invests in a New Gas Corridor to Secure LNG Supply from the U.S.
The EU Invests in a New Gas Corridor to Secure LNG Supply from the U.S.
Liquefied natural gas (LNG) prices in the Eastern Mediterranean are falling, impacted by weak European demand and reduced shipping costs while gas reserves remain high.
Liquefied natural gas (LNG) prices in the Eastern Mediterranean are falling, impacted by weak European demand and reduced shipping costs while gas reserves remain high.
[the_ad id="121209"]
[the_ad id="121211"]
Finnish court orders the seizure of Russian assets in response to a request by the Ukrainian company Naftogaz, as part of enforcing a $5 billion arbitration award for losses in Crimea.
As India's demand for natural gas surges rapidly, domestic production remains insufficient, pushing the country to increase its reliance on imports to secure its energy future.
As India's demand for natural gas surges rapidly, domestic production remains insufficient, pushing the country to increase its reliance on imports to secure its energy future.
Baker Hughes will supply Petrobras with 77 km of flexible pipes to develop oil and gas reserves in the Santos Basin, a strategic area off Brazil's coast. This partnership strengthens Brazil's energy autonomy.
Baker Hughes will supply Petrobras with 77 km of flexible pipes to develop oil and gas reserves in the Santos Basin, a strategic area off Brazil's coast. This partnership strengthens Brazil's energy autonomy.
Kuwait is committed to reducing greenhouse gas emissions and achieving carbon neutrality by 2050. The plan integrates an increase in liquefied natural gas (LNG) imports, an extensive carbon capture project, and the development of electric vehicle infrastructure.
Kuwait is committed to reducing greenhouse gas emissions and achieving carbon neutrality by 2050. The plan integrates an increase in liquefied natural gas (LNG) imports, an extensive carbon capture project, and the development of electric vehicle infrastructure.
[the_ad id="121213"]
[the_ad id="121214"]
With increasing sanctions against Russian LNG, an evasion ecosystem is emerging in various global hubs, fostering transactions in local currencies and a parallel trade network.
Ukraine on the Verge of Winter: Insufficient Gas Reserves Face Consumption Challenges
Ukraine on the Verge of Winter: Insufficient Gas Reserves Face Consumption Challenges
Turkmenistan is intensifying efforts to extinguish the burning Darvaza crater, a major source of methane emissions for 50 years, strengthening its environmental policy against climate change.
Turkmenistan is intensifying efforts to extinguish the burning Darvaza crater, a major source of methane emissions for 50 years, strengthening its environmental policy against climate change.
GTT's revenue reached 465 million euros in the first nine months of 2024, up 54.9%. This growth is driven by strong LNG demand, fueling orders for LNG carriers to meet global needs.
GTT's revenue reached 465 million euros in the first nine months of 2024, up 54.9%. This growth is driven by strong LNG demand, fueling orders for LNG carriers to meet global needs.
France: CGT warns of 2,200 job cuts at GRDF by 2028
Shell Energy acquires a 609 MW combined-cycle power plant in the ISO New England energy market, further strengthening its position in the U.S. gas and electricity sector.
Shell Energy acquires a 609 MW combined-cycle power plant in the ISO New England energy market, further strengthening its position in the U.S. gas and electricity sector.
Germany's SEFE has concluded a gas purchase deal with U.S. company ConocoPhillips for the delivery of 9 billion cubic meters of gas over 10 years, as part of a new business partnership.
Germany's SEFE has concluded a gas purchase deal with U.S. company ConocoPhillips for the delivery of 9 billion cubic meters of gas over 10 years, as part of a new business partnership.
France assures it has the necessary infrastructures to meet its gas needs this winter while supporting its European neighbors, despite potential drops in temperatures.
France assures it has the necessary infrastructures to meet its gas needs this winter while supporting its European neighbors, despite potential drops in temperatures.
[the_ad id="121219"]
Singapore launches a new liquefied natural gas (LNG) terminal of 5 million tons per year at Jurong Port. This floating facility enhances flexibility and strengthens the country's energy supply.
LNG Freight Rates Hit Multiyear Lows Amid Weak Demand
LNG Freight Rates Hit Multiyear Lows Amid Weak Demand
The Matterhorn Express pipeline, inaugurated in September 2024, revolutionizes natural gas transportation in the Permian Basin, enhancing producers' profitability and stabilizing gas prices at the Waha hub.
The Matterhorn Express pipeline, inaugurated in September 2024, revolutionizes natural gas transportation in the Permian Basin, enhancing producers' profitability and stabilizing gas prices at the Waha hub.
Iraq, among the largest emitters of flaring, is seeking to attract Western investors to develop its gas sector and decrease harmful emissions.
Iraq, among the largest emitters of flaring, is seeking to attract Western investors to develop its gas sector and decrease harmful emissions.
Venture Global LNG informs Edison SpA of a delay in deliveries until April 2025, resulting in significant financial and contractual repercussions for both parties.
On October 15, the Energos Princess carrier unloaded at the Gate terminal in the Netherlands the first shipment of liquefied natural gas (LNG) exported by Mexico to Europe, marking a significant milestone in the energy sector.
On October 15, the Energos Princess carrier unloaded at the Gate terminal in the Netherlands the first shipment of liquefied natural gas (LNG) exported by Mexico to Europe, marking a significant milestone in the energy sector.
OX2 has acquired its first onshore wind power project in Australia, planning a capacity of 1 GW and integrating a battery energy storage system. Located north of Perth, this project marks a key milestone in the company's expansion in the Australian market.
OX2 has acquired its first onshore wind power project in Australia, planning a capacity of 1 GW and integrating a battery energy storage system. Located north of Perth, this project marks a key milestone in the company's expansion in the Australian market.
The energy ministries of Israel and Cyprus are discussing a historic agreement for the export of natural gas, marking the first sale of Israeli gas in Europe via a pipeline.
The energy ministries of Israel and Cyprus are discussing a historic agreement for the export of natural gas, marking the first sale of Israeli gas in Europe via a pipeline.

Advertising